Proposed and Revised Purchase Memorandum Accounts
USSGL Board Meeting
May 18, 2006
Proposed New Accounts
Account Title:Purchases of Inventory and Related Property
Account Number:8803
Normal Balance:Debit
Definition: To record the amount of inventory and related property purchased during the fiscal year. This account closes into USSGL account 8801, “Offset for Purchases of Assets,” at yearend.
Justification: Notes 5 and 6, Inventories and Related Property and Property, Plant and Equipment (PPE), respectively, of the I TFM 2-4700 (Appendix 3), Agency Reporting Requirements for the Financial Report of the United States Government, Financial Report Notes, requires agencies to report capitalized assets relating to purchases of inventory and PPE in separate notes. To accommodate the requirement, it is necessary to create a new purchase account to record the amount of purchases related to inventories and related property.
Account Title:Purchases of Assets - Other
Account Number:8804
Normal Balance:Debit
Definition: To record the amount of other assets purchased during the fiscal year, not otherwise classified in USSGL accounts 8802, “Purchases of Property, Plant and Equipment,” and 8803, “Purchases of Inventory and Related Property.” Other assets include but are not limited to the purchase of investments requiring an outlay. In addition, this account closes into USSGL account 8801, “Offset for Purchases of Assets,” at yearend.
Justification: To create an account that records the purchases of all other assets not classified in USSGL accounts 8801 and 8803.
Presented by Melinda Pope
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Proposed and Revised Purchase Memorandum Accounts
USSGL Board Meeting
May 18, 2006
Revised Account
Current Account Title:Purchases of Capitalized Assets
Proposed Account Title:Purchases of Property, Plant and Equipment
Account Number:8802
Normal Balance:Debit
Current Definition: To record purchases of capitalized assets during the fiscal year. This account closes into USSGL account 8801, “Offset for Purchases of Capitalized Assets,” at yearend.
Proposed Definition: To record the amount of capitalized property, plant and equipment purchased during the fiscal year. This account closes into USSGL account 8801, “Offset for Purchases of Assets,” at yearend.
Justification: Notes 5 and 6, Inventories and Related Property and Property, Plant and Equipment (PPE), respectively, of the I TFM 2-4700 (Appendix 3), Agency Reporting Requirements for the Financial Report of the United States Government, Financial Report Notes, requires agencies to report capitalized assets relating to purchases of inventory and PPE in separate notes. To accommodate the requirement, it is necessary to revise the account definition to specify that the account is to be used to record the amount of purchases related to capitalized PPE.
Current Account Title:Offset for Purchases of Capitalized Assets
Proposed Account Title:Offset for Purchases of Assets
Account Number:8801
Normal Balance:Credit
Current Definition: To offset activity recorded in USSGL account 8802, “Purchases of Capitalized Assets.” USSGL account 8802 closes into this account at yearend.
Proposed Definition: To offset activity recorded in USSGL account 8802, “Purchases of Property, Plant and Equipment,” USSGL account 8803, “Purchases of Inventory and Related Property,” and USSGL account 8804, “Purchases of Assets – Other.” USSGL accounts 8802, 8803 and 8804 close into this account at yearend.
Justification: The USSGL account definition is revised to include the offset of amounts in proposed USSGL accounts 8803, “Purchases of Inventory and Related Property,” and USSGL account 8804, “Purchases of Assets – Other.” Additionally, the USSGL account definition is revised to include the revised USSGL account title for USSGL account 8802, “Purchases of Property, Plant and Equipment.”
Presented by Melinda Pope
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New and Revised Transactions for Purchase Memorandum Accounts
USSGL Board Meeting
May 18, 2006
NEW
E204To record activity for current-year purchases of Inventory and Related Property.
Comment: USSGL transactions that reference this transaction: USSGL TCs-B302, B304, B306, B334, B404, C132, C134, C136, C138, C212, D102, D104, D106, D108, D110, D114, D116, D132, and D134.
Memorandum Entry
Debit 8803 Purchases of Inventory and Related Property
Credit 8801 Offset for Purchases of Assets
E206To record activity for current-year purchases of other assets not recorded as Property, Plant and Equipment or Inventory and Related Property, TC – E202 and TC E - 204, respectively.
Comment: USSGL transactions that reference this transaction: USSGL TCs-B302, B304, B306, B346, B404, C132, C134, C136, C138, C212, D102, D104, D106, D108, D110, D114, D116, D132, and D134.
Memorandum Entry
Debit 8804 Purchases of Assets - Other
Credit 8801 Offset for Purchases of Assets
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New and Revised Transactions for Purchase Memorandum Accounts
USSGL Board Meeting
May 18, 2006
Revised
E202To record activity for current-year purchases of property, plant and equipment assets.
Transaction Origin: USSGL implementation guidance; Memorandum Accounts for Current-Year Asset Activity - Purchases
Comment: USSGL transactions that reference this transaction (boldface transactions codes reference a reversal): USSGL TCs-B302, B304, B306, B334, B346, B404, C132, C134, C136, C138, C212, D102, D104, D106, D108, D110, D114, D116, D132, and D134.
Memorandum Entry
Debit 8802 Purchases of Property, Plant and Equipment
Credit 8801 Offset for Purchases of Assets
F255To record the closing of memorandum accounts for purchases.
Transaction Origin: USSGL implementation guidance; Memorandum Accounts for Current-Year Asset
Activity - Purchases
Memorandum Entry
Debit 8801 Offset for Purchases of Assets
Credit 8802 Purchases of Property, Plant and Equipment
Credit 8803 Purchases of Inventory and Related Property
Credit 8804 Purchases of Assets - Other
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Crosswalk and Financial Report Cross Reference Matrix
USSGL Board Meeting
May 18, 2006
Account / Statement of Financing / ReciprocalCategory / Financial Report Note
8801 / N/A / N/A / N/A
8802 / 15* / 24 – Buy/Sell / 6
8803 / 15* / 24 – Buy/Sell / 5
8804 / 15* / 24 - Buy/Sell / where appropriate
*Statement of Financing Line 15, Resources that finance the acquisition of assets
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